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IPTV vs. emerging video services: Dilemma of telcos to upgrade the broadband

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  • Kim, Jiwhan
  • Nam, Changi
  • Ryu, Min Ho

Abstract

IPTV is an important tool to change business structures and move beyond subscription-based business models for telecom operators. However, the level of IPTV penetration differs among operators, which might be closely related to individual operator's strategy for the broadband market and the regulatory environment. Controlling country-specific business environments, this study identifies the key factors influencing IPTV penetration rates. Results show that broadband penetration, broadband quality, telecommunications service fee, and broadband cap are important factors leading to greater IPTV penetration. This might provide valuable suggestions to telecom operators, such as strategies for leveraging broadband quality and data cap to compete against emerging video services, or bundling strategies with price benefits to convert more broadband users into IPTV subscribers. Comparison of groups differing in IPTV penetration rates, GDP per capital, and percentage of urban population are conducted to gain additional insight into the contextual differences between countries. The results reinforce the importance of constructing high quality broadband infrastructure and taking advantage of bundling plans.

Suggested Citation

  • Kim, Jiwhan & Nam, Changi & Ryu, Min Ho, 2020. "IPTV vs. emerging video services: Dilemma of telcos to upgrade the broadband," Telecommunications Policy, Elsevier, vol. 44(4).
    • Handle: RePEc:eee:telpol:v:44:y:2020:i:4:s0308596119301429
    DOI: 10.1016/j.telpol.2019.101889
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    1. Yeong-Wha Sawng & Kazuyuki Motohashi & Gang-Hoon Kim, 2013. "Comparative analysis of innovative diffusion in the high-tech markets of Japan and South Korea: a use–diffusion model approach," Service Business, Springer;Pan-Pacific Business Association, vol. 7(1), pages 143-166, March.
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    4. Sung, Nakil & Kwack, Eunkyoung, 2016. "IPTV's videos on demand for television programs, their usage patterns, and inter-channel relationship in Korea," Telecommunications Policy, Elsevier, vol. 40(10), pages 1064-1076.
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    Cited by:

    1. Hadjielias, Elias & (Lola) Dada, Olufunmilola & Discua Cruz, Allan & Zekas, Stavros & Christofi, Michael & Sakka, Georgia, 2021. "How do digital innovation teams function? Understanding the team cognition-process nexus within the context of digital transformation," Journal of Business Research, Elsevier, vol. 122(C), pages 373-386.
    2. Park, Sungwook & Kwon, Youngsun, 2023. "Disentangling the effects on OTT platform performance of three strategies: Pricing, M&As, and content investments," Telecommunications Policy, Elsevier, vol. 47(8).

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